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Gender gap in wage returns to job tenure and experience

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  • Munasinghe, Lalith
  • Reif, Tania
  • Henriques, Alice

Abstract

Abstact We present empirical evidence on gender disparities in wage returns to job tenure and experience. We find that the overall wage return on an extra year of labor market experience is lower for women than men. A decomposition analysis shows that the wage return to job tenure is substantially lower for women than men, and that the wage return to experience is higher for women than men. These gender differences are robust to various estimation procedures and are especially pronounced for more educated workers. We hypothesize that these observed gender disparities in wage returns are driven by the fact that women are less attached to their jobs than men. We present some supportive evidence for our hypothesis, namely, that women are more likely to quit their jobs, receive substantially fewer hours of company provided training, and a much higher fraction of women expect to not work at age 35 due to family related reasons.

Suggested Citation

  • Munasinghe, Lalith & Reif, Tania & Henriques, Alice, 2008. "Gender gap in wage returns to job tenure and experience," Labour Economics, Elsevier, vol. 15(6), pages 1296-1316, December.
  • Handle: RePEc:eee:labeco:v:15:y:2008:i:6:p:1296-1316
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    References listed on IDEAS

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    Cited by:

    1. Chiang, Hui-Yu & Ohtake, Fumio, 2014. "Performance-pay and the gender wage gap in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 34(C), pages 71-88.
    2. Giovanni Sulis, 2014. "Wage Returns to Experience and Tenure for Young Men in Italy," Scottish Journal of Political Economy, Scottish Economic Society, vol. 61(5), pages 559-588, November.
    3. Hanel, Barbara & Kalb, Guyonne & Scott, Anthony, 2014. "Nurses’ labour supply elasticities: The importance of accounting for extensive margins," Journal of Health Economics, Elsevier, vol. 33(C), pages 94-112.
    4. Dostie, Benoit & Javdani, Mohsen, 2017. "Not for the Profit, but for the Training? Gender Differences in Training in the For-Profit and Non-Profit Sectors," IZA Discussion Papers 11108, Institute for the Study of Labor (IZA).
    5. Assadi, Anahita & Lundin, Martin, 2015. "Tenure and street-level bureaucrats: how assessment tools are used at the frontline of the public sector," Working Paper Series 2015:19, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    6. Bublitz, Elisabeth & Boll, Christina, 2016. "Individual determinants of job-related learning and training activities of employees - An exploratory analysis of gender differences," Annual Conference 2016 (Augsburg): Demographic Change 145865, Verein für Socialpolitik / German Economic Association.
    7. Grund, Christian, 2015. "Gender pay gaps among highly educated professionals — Compensation components do matter," Labour Economics, Elsevier, vol. 34(C), pages 118-126.
    8. repec:ilo:ilowps:487376 is not listed on IDEAS
    9. Cipollone, Angela & Patacchini, Eleonora & Vallanti, Giovanna, 2012. "Women’s Labour Market Performance in Europe: Trends and Shaping Factors," CEPS Papers 7329, Centre for European Policy Studies.
    10. Kuhlenkasper, Torben & Kauermann, Göran, 2010. "Female wage profiles: An additive mixed model approach to employment breaks due to childcare," HWWI Research Papers 2-18, Hamburg Institute of International Economics (HWWI).
    11. Boll, Christina & Bublitz, Elisabeth, 2016. "A cross-country comparison of gender differences in job-related training: The role of working hours and the household context," HWWI Research Papers 172, Hamburg Institute of International Economics (HWWI).
    12. Nuno Crespo & Nádia Simões & José Castro Pinto, 2013. "Determinant factors of job quality in Europe," Working Papers Series 2 13-01, ISCTE-IUL, Business Research Unit (BRU-IUL).
    13. Mazzutti, Caio Cícero Toledo Piza da Costa, 2016. "Three essays on the causal impacts of child labour laws in Brazil," Economics PhD Theses 0616, Department of Economics, University of Sussex.
    14. Chih Cheng CHEN, 2013. "Industry Agglomeration and Wage Differentiation: An Empirical Study on Taiwan’s Manufacturing Industry," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 13(2), pages 147-160.
    15. Angela Cipollone & Eleonora Patacchini & Giovanna Vallanti, 2013. "Women Labor Market Performance In Europe:Novel Evidence On Trends And Shaping Factors," Working Papers LuissLab 13107, Dipartimento di Economia e Finanza, LUISS Guido Carli.
    16. Angela Cipollone & Eleonora Patacchini & Giovanna Vallanti, 2014. "Female labour market participation in Europe: novel evidence on trends and shaping factors," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-40, December.
    17. Grimshaw, Damian. & Rubery, Jill., 2015. "The motherhood pay gap : a review of the issues, theory and international evidence," ILO Working Papers 994873763402676, International Labour Organization.
    18. Fang, Zheng & Sakellariou, Chris, 2015. "Discrimination or Unobserved Differences in Characteristics?-An Empirical Study on Wage Inequality," MPRA Paper 68568, University Library of Munich, Germany.
    19. Cipollone, Angela & Patacchini, Eleonora & Vallanti, Giovanna, 2013. "Women Labor Market Participation in Europe: Novel Evidence on Trends and Shaping Factors," IZA Discussion Papers 7710, Institute for the Study of Labor (IZA).

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